topic IRA Deduction in Get your taxes done using TurboTax

IRA Deduction

bgtheedge — Mon, 09 Mar 2026 08:03:52 GMT

I am retired and have a life insurance policy that is paid by my company but is charged to me as earned income on a W2. Can I use that to contribute to a IRA and receive a tax break?

Re: IRA Deduction

fanfare — Mon, 14 Mar 2022 15:24:33 GMT

If it shows on Line 1, you can contribute that much.

Re: IRA Deduction

Vanessa A — Mon, 14 Mar 2022 15:34:42 GMT

Yes, you can use that money to contribute to an IRA to receive a tax break. The laws have changed for 2021, now there is not an age limit to contribute to a traditional IRA, but you still must take your RMD.

Re: IRA Deduction

dmertz — Mon, 14 Mar 2022 16:09:02 GMT

With regard to your W-2, the IRS treats as compensation the amount in box 1 minus any amount in box 11.